Obama Set To Hack $36.5 Billion In Oil And Gas Subsidies

The Obama administration asked Congress to end roughly $36.5 billion in subsidies for oil and gas companies for the second time on Monday, Reuters reports.

Eliminating the subsidies, the administration said, would "foster the clean energy economy of the future and reduce our reliance on fossil fuels that contribute to climate change."

Tax breaks that would get axed include:

Deductions for drilling costs

Credits for low-volume oil and gas wells

Manufacturing tax deductions for oil and gas companies.

If approved, the changes will take effect on January 1, 2011, and save $36.5 billion over 10 years. Oil and gas companies argue that abolishing the tax breaks would reduce domestic drilling, cost jobs and increase our dependence on foreign energy suppliers.